The ABLEnow Account (Virginia): A Parent's Guide

Virginia runs one of the largest ABLE programs in the country — ABLEnow — and pairs it with a state income tax deduction for contributions and limits on Medicaid recovery. For Virginia families raising an autistic child on SSI or Medicaid, it's the cleanest way to build savings that benefit rules can't punish.

Here's how ABLEnow works in 2026. Confirm current details at ablenow.com before enrolling.

Quick facts

• Program: ABLEnow, run by Virginia529 (open to residents of any state)
• 2026 contribution limit: $20,000 per year from all sources combined
• Virginia tax benefit: Deduct up to $2,000 per contributor, per account, from Virginia taxable income, with carryforward of excess contributions
• Recovery protection: Virginia is among the states limiting Medicaid claims against ABLE funds after the account owner's death
• New in 2026: Eligibility expanded to anyone whose disability began before age 46

What an ABLE account is

An ABLE account is a federally authorized, tax-advantaged account for people whose disability began early in life. A childhood autism diagnosis meets the age-of-onset requirement; eligibility comes through SSI/SSDI or a physician's disability certification, self-certified at enrollment. Earnings grow tax-free, qualified withdrawals are tax-free, and up to $100,000 stays invisible to SSI's $2,000 resource limit. One account per person; anyone can contribute.

What you can pay for

Qualified disability expenses cover anything that maintains or improves health, independence, or quality of life: uncovered therapy costs, AAC devices and assistive technology, education and tutoring, housing and rent, transportation, sensory equipment, personal support services, respite care, and legal or financial fees. Housing is the standout — ABLE funds pay rent without the SSI reductions that normally follow housing help. Keep receipts; non-qualified withdrawals cost tax plus a 10% penalty on earnings.

Virginia's tax deduction

Virginia taxpayers can deduct up to $2,000 in ABLEnow contributions per account each year from Virginia taxable income, with excess contributions carried forward to future years. The deduction applies per contributor, so grandparents contributing to your child's account claim their own deduction on their Virginia returns. (Virginia also removes the annual cap for contributors age 70 and older — relevant for grandparents doing estate planning.)

Beyond the deduction: tax-free compounding, tax-free qualified withdrawals, potential federal Saver's Credit for a working adult account owner, and Virginia's limits on post-death Medicaid claims against the account.

How to open an account

1. Enroll online at ablenow.com with your child's Social Security number
2. Self-certify eligibility (SSI/SSDI or physician certification, onset before age 46)
3. Make the minimum opening deposit and choose investments, including an FDIC-insured option; ABLEnow also offers a dedicated debit card
4. Set up automatic monthly contributions

Parents and guardians can open and manage the account as the Authorized Legal Representative for a minor or an adult child who needs support.

Protecting SSI and Medicaid

Up to $100,000 is fully disregarded for SSI; above that, SSI is suspended — not terminated — until the balance falls back below the threshold. Virginia Medicaid, including DD waiver services, is unaffected at any balance.

ABLE account vs. special needs trust

The ABLE account is the everyday tool — inexpensive, quick, able to pay housing without SSI penalties — capped at $20,000/year of contributions. A special needs trust suits inheritances and settlements with no cap, at real setup cost. Virginia families often pair them, with the trust distributing into the ABLEnow account. Virginia's recovery limits strengthen the ABLE side of that structure.

FAQ

Is my child eligible without SSI? Yes — a physician's certification of a qualifying disability with onset before age 46 works.

Can we roll over an Invest529 college account? Yes, 529-to-ABLE rollovers are permanently allowed within the annual limit; ask about deduction recapture first.

What's ABLE to Work? An employed account owner without a workplace retirement plan can add up to $15,650 above the annual cap from earnings (2026 figure).

General information, not tax or legal advice. Confirm current details at ablenow.com.

Related guides

• Autism rights and advocacy
• IEPs for autism
• Autism scholarships
• ABLE accounts: the complete guide
• Maryland ABLE account
• North Carolina ABLE account